AIMA sees EU passporting contradicting AIFMD structure

The additional fees and requirements for the EU passport scheme affect the harmonisation of the market, according to the alternative investment management association.

By Paul Walsh(2147491592)
The additional fees and requirements for the EU passport scheme affect the harmonisation of the market, according to the alternative investment management association (AIMA).

Last week the European Commission said it will launch a consultation to improve fund passporting, after asset managers flagged issues with the system.

Jennifer Wood, managing director, global head of asset management regulation, and sound practices at AIMA suggested that additional requirements were contradictory to the scheme’s targets.

“The Alternative Investment Fund Managers Directive (AIFMD) provides a structure for the way passporting is supposed to happen, unlike the UCITS regime which allows for member states to impose additional requirements around passporting.

“AIFMD doesn’t have those provisions and our view is that in a drafting of the directive, those additional requirements shouldn’t be permissible and as the passport was designed in a way that was supposed to be a straight through harmonised process. In our view those additional requirements go away from that.”

Originally designated under AIFMD the pan EU marketing passport allows EU managers of EU funds to market their funds.
Commissioner Jonathan Hill revealed during a speech at the EUROFI High Level Seminar in Amsterdam that a consultation would be held in May to investigate the passport scheme following complaints from asset managers.

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